When Nvda bubble crashes it will resemble the 2008 crash

by

by Confident-Country123

Nvda market cap of $3.2T 2008 crash led to losses of $2T.

The financial crisis happened because:

  1. a large loss in asset valuation
  2. high leverage and derivative positions multiplied this loss into something way bigger
  3. every major bank in the country was holding these assets on its balance sheet
  4. banking system instability starts mass panic / run

NVIDIA stops at number 1. Maybe it gets to 2 and some hedge funds go under, which doesn’t matter to the wider economy. But no major bank has a balance sheet riding on this because equity is always assumed risky. The reason that the financial crisis in 2008 could get to step 3 was that assets that were considered extremely safe turned out not to be.

Nvidia just lost the equivalent of Intel’s entire market cap in a single day
byu/StatQuants inStockMarket


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